TEMPE, Ariz.--(EON: Enhanced Online News)--Limelight Networks, Inc. (Nasdaq: LLNW) (Limelight), a global leader in
digital content delivery, today reported revenue of $52.1 million for
the first quarter of 2018, up 16 percent, compared to $44.7 million in
the first quarter of 2017, and up 8% compared to $48.2 million in the
fourth quarter of 2017. Currency favorably impacted year-over-year
comparison by $0.5 million and the sequential comparison by $0.3 million.

GAAP gross margin was 51.2% in the first quarter of 2018, an increase of
390 basis points from 47.3% in the first quarter of 2017.

Limelight reported net income of $0.1 million, or break-even per basic
and fully diluted share, for the first quarter of 2018, compared to a
net loss of $3.3 million, or loss of $0.03 per basic share, for the
first quarter of 2017.

Non-GAAP net income was $6.2 million, or $0.06 per basic share, for the
first quarter of 2018, compared to non-GAAP net income of $1.6 million,
or $0.02 per basic share, for the first quarter of 2017.

EBITDA was $4.9 million for the first quarter of 2018, compared to $1.7
million for the first quarter of 2017. Adjusted EBITDA was $11.0 million
for the first quarter of 2018 compared to $6.7 million for the first
quarter of 2017.

Limelight ended the first quarter with 544 employees and employee
equivalents, up from 533 at the end of the fourth quarter of 2017, and
up from 528 at the end of the first quarter of 2017.

“Limelight has started 2018 on a strong note, with double-digit revenue
growth, gross margins in excess of 50 percent, and positive GAAP
profitability. We are raising our full-year guidance and are excited
about the opportunities that surround us. We continue to be encouraged
by healthy growth trends for content delivery, and we are pleased with
the completion of certain matters we think will be of value to Limelight
shareholders going forward. For example, in recent months, Goldman Sachs
successfully exited its large equity ownership stake in Limelight, which
erases a decade-long stock overhang issue. Separately, Limelight also
entered into a definitive agreement with Akamai with regard to all
outstanding litigation, bringing to an end an equally longstanding legal
battle between the two companies,” said Bob Lento, Chief Executive
Officer at Limelight Networks.

“We continue to expand Limelight’s product features and functionality,
and improve our efficiency and reliability, to enable Limelight
customers to better achieve their goals. We believe Limelight’s focus on
quality will allow us to remain disciplined in our approach to pricing.
Our business purpose is secure, global delivery of digital content, and
we will remain true to our mission. And our initiatives to build out
Edge Computing solutions, and expand into adjacent markets, remain on
track,” Lento added.

Weighing early strength in Limelight’s financial and operational
performance and what the company perceives as favorable industry
tailwinds, Limelight is providing the following updates to its
previously announced full-year 2018 guidance, issued on February 7, 2018:

Revenue is expected to be in the range of $198 to $202 million, up from
previously issued guidance of $196 to $200 million. Gross margin
expectation is now an improvement of over 150 basis points, up from our
previous guidance of a 100 basis point improvement. GAAP EPS is expected
to be between $0.07 and $0.11. Non-GAAP EPS is expected to be between
$0.13 and $0.17 per share, up from $0.11 and $0.15 per share. Adjusted
EBITDA is now expected to be between $33 and $37 million, compared to
our previous guidance of between $32 and $36 million. At the same time,
operational efficiency will allow us to deliver these higher results
with lower capital deployment. We now expect capital expenditures to be
between $20 and $22 million, down from our previous expectation of
between $22 and $24 million.

To evaluate our business, we consider and use non-generally accepted
accounting principles (Non-GAAP) net income (loss), EBITDA and Adjusted
EBITDA as supplemental measures of operating performance. These measures
include the same adjustments that management takes into account when it
reviews and assesses operating performance on a period-to-period basis.
We consider Non-GAAP net income (loss) to be an important indicator of
overall business performance. We define Non-GAAP net income (loss) to be
U.S. GAAP net income (loss) adjusted to exclude share-based compensation
and litigation expenses. We believe that EBITDA provides a useful metric
to investors to compare us with other companies within our industry and
across industries. We define EBITDA as U.S. GAAP net income (loss)
adjusted to exclude depreciation and amortization, interest expense,
interest and other (income) expense, and income tax expense. We define
Adjusted EBITDA as EBITDA adjusted to exclude share-based compensation
and litigation expenses. We use Adjusted EBITDA as a supplemental
measure to review and assess operating performance. Our management uses
these Non-GAAP financial measures because, collectively, they provide
valuable information on the performance of our on-going operations,
excluding non-cash charges, taxes and non-core activities (including
interest payments related to financing activities). These measures also
enable our management to compare the results of our on-going operations
from period to period, and allow management to review the performance of
our on-going operations against our peer companies and against other
companies in our industry and adjacent industries. We believe these
measures also provide similar insights to investors, and enable
investors to review our results of operations “through the eyes of
management.”

Furthermore, our management uses these Non-GAAP financial measures to
assist them in making decisions regarding our strategic priorities and
areas for future investment and focus.

The terms Non-GAAP net income (loss), EBITDA and Adjusted EBITDA are not
defined under U.S. GAAP, and are not measures of operating income,
operating performance or liquidity presented in accordance with U.S.
GAAP. Our Non-GAAP net income (loss), EBITDA and Adjusted EBITDA have
limitations as analytical tools, and when assessing our operating
performance, Non-GAAP net income (loss), EBITDA and Adjusted EBITDA
should not be considered in isolation, or as a substitute for net income
(loss) or other consolidated income statement data prepared in
accordance with U.S. GAAP. Some of these limitations include, but are
not limited to:

EBITDA and Adjusted EBITDA do not reflect our cash expenditures or
future requirements for capital expenditures or contractual
commitments;

these measures do not reflect changes in, or cash requirements for,
our working capital needs;

Non-GAAP net income (loss) and Adjusted EBITDA do not reflect the cash
requirements necessary for litigation costs, including provision for
litigation and litigation expenses;

these measures do not reflect the interest expense, or the cash
requirements necessary to service interest or principal payments, on
our debt that we may incur;

these measures do not reflect income taxes or the cash requirements
for any tax payments;

although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized will be replaced sometime in
the future, and EBITDA and Adjusted EBITDA do not reflect any cash
requirements for such replacements;

while share-based compensation is a component of operating expense,
the impact on our financial statements compared to other companies can
vary significantly due to such factors as the assumed life of the
options and the assumed volatility of our common stock; and

other companies may calculate Non-GAAP net income (loss), EBITDA and
Adjusted EBITDA differently than we do, limiting their usefulness as
comparative measures.

We compensate for these limitations by relying primarily on our U.S.
GAAP results and using Non-GAAP net income (loss), EBITDA, and Adjusted
EBITDA only as supplemental support for management's analysis of
business performance. Non-GAAP net income (loss), EBITDA and Adjusted
EBITDA are calculated as follows for the periods presented in thousands:

Reconciliation of Non-GAAP Financial Measures

Limelight is presenting the most directly comparable U.S. GAAP financial
measures and reconciling the non-GAAP financial metrics to the
comparable U.S. GAAP measures. Per share amounts may not foot due to
rounding.

LIMELIGHT NETWORKS, INC.

Reconciliation of U.S. GAAP Net Income (Loss) to Non-GAAP Net
Income

(In thousands)

(Unaudited)

Three Months Ended

March 31, 2018

December 31, 2017

March 31, 2017

Amount

Per Share

Amount

Per Share

Amount

Per Share

U.S. GAAP net income (loss)

$

149

$

0.00

$

(912

)

$

(0.01

)

$

(3,337

)

$

(0.03

)

Share-based compensation

3,367

0.03

3,302

0.03

3,075

0.03

Litigation expenses

2,670

0.02

1,470

0.01

1,909

0.02

Non-GAAP net income

$

6,186

$

0.06

$

3,860

$

0.04

$

1,647

$

0.02

Weighted average basic shares used in per share calculation

110,761

110,128

107,363

LIMELIGHT NETWORKS, INC.

Reconciliation of U.S. GAAP Net Income (Loss) to EBITDA to
Adjusted EBITDA

(In thousands)

(Unaudited)

Three Months Ended

March 31,

December 31,

March 31,

2018

2017

2017

U.S. GAAP net income (loss)

$

149

$

(912

)

$

(3,337

)

Depreciation and amortization

4,968

5,131

5,146

Interest expense

59

38

14

Interest and other (income) expense

(242

)

(332

)

(204

)

Income tax (benefit) expense

(15

)

(22

)

108

EBITDA

$

4,919

$

3,903

$

1,727

Share-based compensation

3,367

3,302

3,075

Litigation expenses

2,670

1,470

1,909

Adjusted EBITDA

$

10,956

$

8,675

$

6,711

For future periods, we are unable to provide a reconciliation of EBITDA
and Adjusted EBITDA to net income (loss) as a result of the uncertainty
regarding, and the potential variability of, the amounts of depreciation
and amortization, interest expense, interest and other (income) expense
and income tax expense, that may be incurred in the future.

2018 Guidance Table

Limelight Networks, Inc.

2018 Guidance

2018 Guidance

April 19, 2018

February 7, 2018

Revenue

$198 to $202 million

$196 to $200 million

Gross margin percentage

Expansion of more than 150basis points over 2017

Expansion of more than 100 basispoints over 2017

GAAP EPS

$0.07 to $0.11

$(0.07) to $(0.03)

Non-GAAP EPS

$0.13 to $0.17

$0.11 to $0.15

Adjusted EBITDA

$33 to $37 million

$32 to $36 million

Capital expenditures

$20 to $22 million

$22 to $24 million

Conference Call

At approximately 4:30 p.m. EDT (1:30 p.m. PDT) today, management will
host a quarterly conference call for investors. Investors can access
this call toll-free at 877-296-5190 within the United States or +1
412-317-5233 outside of the U.S. The conference call will also be audio
cast live from http://www.limelight.com
and a replay will be available following the call from the Limelight
website.

Forward-Looking Statements

This press release contains forward-looking statements that involve
risks and uncertainties. These statements include, among others,
statements regarding our expectations regarding revenue, gross margin,
GAAP net income, non-GAAP net income, capital expenditures, and our
future prospects. Our expectations and beliefs regarding these matters
may not materialize. The potential risks and uncertainties that could
cause actual results or outcomes to differ materially from the results
or outcomes predicted include, among other things, reduction of demand
for our services from new or existing customers, unforeseen changes in
our hiring patterns, adverse outcomes in litigation, and experiencing
expenses that exceed our expectations. A detailed discussion of these
factors and other risks that affect our business is contained in our SEC
filings, including our most recent reports on Forms 10-K and 10-Q,
particularly under the heading “Risk Factors.” Copies of these filings
are available online on our investor relations website at
investors.limelightnetworks.com and on the SEC website at www.SEC.gov.
All information provided in this release and in the attachments is as of
April 19, 2018, and we undertake no duty to update this information in
light of new information or future events, unless required by law.